Recently, the Department of Natural Resources and Environment (DONRE) of Ho Chi Minh City informed the press about the roadmap for adjusting the land price list in Ho Chi Minh City according to the 2024 Land Law.
Accordingly, phase 1 from August 1, 2024 to December 31, 2025, the land price list will be adjusted to suit the actual situation in the area according to the provisions of Clause 1, Article 257 of the 2024 Land Law.
The DONRE said that the adjusted land price list is implemented in accordance with the procedures prescribed in Article 17 of Decree No. 71/2024 of the Government regulating land prices. The People's Committees of districts, towns and Thu Duc City collect and send data on land prices to the DONRE.
After that, the consulting unit synthesizes, analyzes and evaluates the suitability of the adjusted land price with the actual situation of land prices in Ho Chi Minh City to develop the adjusted land price list.
The authority to adjust the land price list in this period belongs to the People's Committee of Ho Chi Minh City according to the provisions of Clause 1, Article 257 of the 2024 Land Law and Clause 6, Article 17 of Decree No. 71/2024 of the Government.
Phase 2 will be from January 1, 2026 to December 31, 2026. Currently, the Department of Natural Resources and Environment is carrying out procedures to submit to the competent authority for approval of the project to develop the land price list to be applied for the first time from January 1, 2026 according to the provisions of Clause 3, Article 159 of the 2024 Land Law. The authority to approve the land price list in this period belongs to the People's Council of Ho Chi Minh City.
Phase 3 is from January 1, 2027 onwards. Ho Chi Minh City will adjust, amend and supplement the land price list to be announced and applied from January 1 of the following year (stipulated in Clause 3, Article 159 of the 2024 Land Law).
Currently, there are still many opinions that the draft is not really suitable for the actual situation, creating great financial pressure , especially for the people. Besides, although the increase in land prices has positive impacts such as people whose land is recovered will be compensated more appropriately, the State budget revenue from land will increase, the land rent difference will be handled more appropriately...
However, when land prices increase, compensation and site clearance costs will increase, increasing investment costs, including public investment projects and projects of private enterprises.
That leads to increased input costs, creating pressure to increase real estate prices, rental housing prices, land rental prices in industrial parks... leading to possible increases in commodity prices and adverse impacts on social housing projects .
Regarding the proposal to "consider land prices in some areas with limited infrastructure, economic and social conditions", the Department of Natural Resources and Environment said it has accepted this opinion and transferred it to the consulting unit to study, evaluate and determine land prices in accordance with the actual situation of land prices as well as in accordance with infrastructure, economic and social conditions in areas with limitations.
The results of accepting comments and adjusting land prices in the land price list will be considered and appraised by the Ho Chi Minh City Land Price List Appraisal Council in order.
The Department of Natural Resources and Environment also informed about the need to conduct an impact assessment on a number of affected groups focusing on the conversion of land use purposes of households and individuals.
The Department of Natural Resources and Environment has advised the Ho Chi Minh City People's Committee to report and recommend the Prime Minister to consider and approve the assignment of relevant ministries and branches to advise, develop and promulgate policies regulating appropriate collection levels and rates when the land price list has been adjusted to suit the actual situation of land prices in the locality.
